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10 June 2019

SUEK and the Japanese export credit agency NEXI declare common interests

SUEK’s CEO Vladimir Rashevsky and NEXI’s President Masafumi Nakada have signed a memorandum of understanding.

SAINT PETERSBURG, 7 June. /TASS/. Siberian Coal Energy Company (SUEK) and Nippon Export and Investment Insurance (NEXI), the government-owned Japanese export credit agency, have formally declared an interest in looking for business development opportunities together. The memorandum of understanding was signed at the St Petersburg International Economic Forum (SPIEF), as reported by TASS directly from the signing ceremony.

The document was signed by Vladimir Rashevsky, CEO of SUEK, and Masafumi Nakada, President of NEXI.

‘NEXI is an organisation that helps Japanese companies do business abroad, carry out export operations and work on various projects. SUEK has a history of successful cooperation with Japanese partners; in particular, they have signed agreements with Japanese electric power companies. Now we will use this opportunity to expand financial backing of the cooperation. SUEK and NEXI will be involved in joint projects even more actively, and I hope that the relationship between our countries will benefit from the relationship between the two business entities,’ Nakada commented.

‘We hope that the memorandum can serve as a foundation for signing new deals in the coming months, further enhancing our cooperation and increasing investment in the best interests of the two countries,’ Rashevsky added. The head of SUEK also pointed out that from 2012 to 2018 the company had already raised a US$ 200 million loan against NEXI’s guarantees to fund the development of its mining and logistics assets in the Russian Far East, Vanino Bulk Terminal in particular. ‘Both are essential for SUEK and accommodate the shipping of our products to Japan. SUEK is the largest Russian supplier in the Japanese market: in 2018, our total shipments exceeded 7 million tonnes,’ Rashevsky said.

SUEK’s CEO told the reporters that the memorandum would, on the one hand, increase investment in the coal industry as well as in the Far East and Siberia – the regions where the company operates; on the other hand, it would consolidate SUEK’s position in Japan, which is a key market for the company.

‘Now we are considering a US$ 50 million bank loan deal against NEXI’s guarantees for the supply of Japanese equipment. We widely use such equipment and can set world records with it,’ Rashevsky said, adding that the equipment delivery is scheduled for 2019-2020. The memorandum, according to him, covers plans for other deals as well.

SUEK is Russia's largest coal company with production assets in Kuzbass and other locations across seven regions of Russia. It operates 19 open-pit mines, eight underground mines, nine processing plants and facilities, and three ports in which the company has a major stake. Andrey Melnichenko is SUEK’s main shareholder.

NEXI is the Japanese state export agency that supports Japanese companies by providing insurance for export credit agreements as well as investment insurance and other types of insurance products.

About the forum

SPIEF 2019 is held from 6 to 8 June. All forum events share a common key topic, 'Creating a Sustainable Development Agenda'.

The forum is organised by Roscongress Foundation. TASS acts as an information partner, the official photohost agency and the operator of the SPIEF presentation area supported by Ernst & Young and Russia’s Foreign Investment Advisory Council.

Source: TASS
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